CRM in Retail Industry

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16 สิงหาคม 2554
Sundae Solutions
Mr. Navik Numsiang
Managing Director | Sundae Solutions
Managing Director | Sundae Solutions
re tail
re·tail
noun \’rē-,tāl\

all activities involved in selling, renting, and providing goods and

services to ultimate customers for p personal, family
y or household use.

In the channel of distribution, retailing is where the customer meets

the product.
product It is through retailing that exchange occurs
occurs.

Utilities p
provided by
y retailers create value for customers.
Time, place, possession, and form utilities are offered by most
retailers.
challenges
noun

a summons that is often threatening, provocative, stimulating, or

inciting;
g specifically
p y : a summons to a duel to answer an affront
Problem
P bl ffor b
bricks
i k andd
mortar retail sectors in
actually

identifying
the
customers
Difficultyy in
assembly a
360 view
off the
th
customer
Shoppers
pp having
g high
g expectations
p for in-store services
Retail sector grows in
sophistication
hi ti ti
Internet & Social Media
Facing the toughest

economic conditions
Instinctive reaction to cut all

strategic projects and

wait until things improve
findings
noun

the result of a judicial examination or inquiry

Findings by Retail TouchPoints and
The Aberdeen Group, 2008

Best-in-class retailer are bringing to loyalty programs with the sophistication

and diverse multichannel approach.
Member Information acquisitions:

45% of retailers register customers via

sales associate in the store
41% at POS
41% Online
Findings by Retail TouchPoints and
The Aberdeen Group, 2008
Top two objectives toward loyalty program objectives:
Lifetime Customer Value (57%)
( )
Competitive Advantage (39%)

Findings by Retail TouchPoints and

The Aberdeen Group, 2008
46%
of retailers did not measure promotion
among their customer base at all.
Findings by Retail TouchPoints and
The Aberdeen Group, 2008
Real time customer data is
14% | in use now & 23% will be a priority over the next year

Findings by Retail TouchPoints and

The Aberdeen Group, 2008
conceptual
adjective \kən-’sep-chə-wəl, -chü-əl, kän-, -chəl, -shwəl\

Of, relating to, or consisting of concepts <conceptual thinking>

What is CRM?

CRM is a business
strategy designed to
optimise
profitability, revenue
and
customer satisfaction

Gartner

Management Tools & Trends 2010 by Bain & Co. 
CRM C
CRM Conceptual Framework for Retail
t lF k f R t il
Customer ‐centric CRM Strategy, a Pyramid Framework
CRM Conceptual Framework for Retail
p
Best Practices of Customer Segmentation – CLV Approach
CRM Conceptual Framework for Retail
p
Best Practices of Customer Segmentation – RFM Approach

111 222 333

121 212 323
131 232 313
112 211 332
113 213 331
122 231 321
123 233 322
132 221 312
133 223 311
Technology
noun \tek-’nä-lə-jē\

The practical application of knowledge especially in a particular area

CRM Technology Framework for Retail
Customer data driven close loop CRM Application Architecture
Customer‐data driven close‐loop CRM Application Architecture
CRM T h l
CRM Technology Framework for Retail
F k f R t il
CRM Technology Strategy and IDIC Methodology
Customer Classification
CRM T h l
CRM Technology Framework for Retail
F k f R t il
Reference Retail CRM Solution Components
New
adjective \’nü

Having recently come into existence

M lti Ch
Multi‐Channel CRM
l CRM
Email Marketing and CRM
What s Good about
What’s about Email Marketing?
Email Marketing?
Highly targeted
Immediate
Measurable
Reach
Cost Effective
E-mail is NOT
dead

But social
network
usage is
i
growing
quickly
ROI of Digital
Channels
E il M
Email Market
k t
gave the most
returns on
investment
Mobile CRM
A Consumer’s Always‐on Companion
y p
Where Smartphone Is Used?

93% Home

On-the-go
On the go
93%

87%

In a store 77%

Restaurant 73%

Work 72%

87% At a social gathering/ function

Café or coffee shop 54%

66%

Doctor's Office 53%

Airport 50%

Library 32%

77% School 29%

Source: TheMobileMoment Study, April 2011

70%
Use smartphone while shopping in-store
in store
Source: TheMobileMoment Study, April 2011
Smartphones Are an Integral Part of a
Multi-channel Purchase Process

Source: TheMobileMoment Study, April 2011

Data In, Data Out
The key to good data is getting
y
the data in the system. Staff are
more likely to input data on
mobile devices at the point of
entry. In real-time.
Mash up to CRM
Mash-up
Mash‐ups to CRM 
A mash‐up is a web application 
that combines data from more 
th
than one source into a single 
i t i l
integrated view.

Content used in mash‐ups is 
typically sourced from a third 
party via a Widget or API (web 
party via a Widget or API (web
service).

 Minimized application data 
management
 Reduced development effort

Make CRM SMARTER
Most Popular Mash‐up
p p
Mash‐ups to CRM Dashboard
p
Social CRM
Web 2.0 provoked an 
expansion
expansion of the R in the CRM 
of the R in the CRM
acronym

Company / Customer
C /C
Company / Partner
Company / Competitor
Company / Company
Customer / Partner
/ p
Customer / Competitor
Customer / Customer
Partner / Competitor
 Evolution of the CRM landscape
p
CRM 1.0 CRM 2.0

Customer Customer
Customer
Customer

Customer Customer
Customer Customer

Customer Custome

Competitor Supplier / Partner

Competitor Supplier / Partner

Customer Customer
Customer Customer

Your company
Your company
Customer Customer
Customer Customer Customer Customer

 Focus on individual relationship (company to  •Focus on collaborative relationship (engaging a more complex 
customer, company to partner, etc.) relationship network)

 Limited view of the customer and his community  •Multiple connections allow better understanding of the 
preferences habits etc
preferences, habits, etc. customer and his community
customer and his community
 Targeted messages generate value •Conversation generates value
 Evolution of Customer Touch Points
CRM 1.0 CRM 2.0
• Blogs
g • Microblogs

• Price comparison website

• RSS • Podcast
• Phone • Phone
• Wikis
• Fax • Fax
F
• Social Networks
• Email • Email
• Service • Service
• Widgets
• Letters

+
• Letters • Video sharing
• Personal
P l contact
t t • Personal contact
• Company’s website • Photo sharing
• Company’s website
• SMS • SMS
• Instant Messenger • Forums • Auction website
• Instant Messenger
• Chat • Chat
• Slides sharing
• Media • Media
• Reviews and ratings in retail sites
• Wish lists
• Social Bookmarking

 Single view of the customer based on the interactions 
Single view of the customer based on the interactions •Single view of the customer is far more complex to achieve. 
history, customer profile data residing in the company’s base  Besides internal information, the company must rely on external 
and data integration with internal systems information such as customer profiles in social networks and his 
behavior when participating in a community.
 Company owns the data but it is limited to previous 
interactions •Customer and other web 2 0 sites own part of the precious data
•Customer and other web 2.0 sites own part of the precious data
Evolution of Organizational Mindset
g
CRM 1.0 CRM 2.0

!
!
!
!
Interaction
Conversation
Contribution
Transaction
Feedback

Employee Customer Employees Customers

 Innovation comes from one specialized source within the  •Innovation is gathered from all employees as they are closely 
company (innovation group) connected to the final customer and to each other via internal 
web 2.0 tools. Customers are in the center of the innovation 
 Frontline employees communicate targeted messages for 
F tli l i t t t d f cycle.
transactional operations 
•Frontline and non frontline employees engage conversations 
including new customers in the context and rerouting 
conversations New set of employee skills needed
conversations. New set of employee skills needed.
Social CRM Process
Wrap Up
ap Up
Turn challenges into 
strategic competitive 
advantage and
advantage and 
enhance their long‐
term viability and 
profitability
Mr. Navik Numsiang
Managing Director | Sundae Solutions
Managing Director | Sundae Solutions
M | 0814813999
E   | navik@sundae.co.th
FB | facebook com/navikn
FB | facebook.com/navikn
G+ |  Navik Numsiang
Visit the Our Sundae Ecosystem at
www sundae co th
www.sundae.co.th

Facebook.com/SundaeSolutions

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Thank You for Comingg
Sundae Solutions Co., Ltd.
T l 0 2634 8899
Tel. 0 2634 8899
Email: marketing@sundae.co.th
Website: www.sundae.co.th